April 5 (Bloomberg) -- Great Wolf Resorts Inc., which runs
11 resorts in the U.S. and Canada, rose to its highest level in
almost four years after receiving a higher buyout offer than one
proposed by Apollo Global Management LLC.

KSL Capital Partners LLC offered to buy the company for
$6.25 per share in cash, Madison, Wisconsin-based Great Wolf
said in a statement yesterday after U.S. markets closed. Apollo,
based in New York, offered $5 a share on March 13 in a deal
valued at $703 million, including the assumption of debt.

Great Wolf said it will consider and evaluate the proposal
by KSL, a private-equity firm based in Denver, and had no other
comments. Great Wolf jumped 15 percent to $6.58 today in New
York, the most since the day of Apollo’s bid. The shares were
last higher on June 5, 2008.

Following Apollo’s bid, Great Wolf was sued by shareholders
who said the resort owner didn’t obtain the highest possible
offer. The lawsuits claimed the company’s own financial adviser,
Deutsche Bank Securities Inc., valued it between $3.74 and $7.98
a share.

A Delaware judge had been scheduled to hear Great Wolf
shareholders’ complaints today. The hearing was pushed back to
April 18 in the wake of KSL’s higher bid.

In its deal with Apollo, run by Chief Executive Officer
Leon Black, Great Wolf was required to adopt a shareholders’
rights plan to thwart hostile acquirers and agreed not to
solicit other interested parties. It will also pay the buyout
firm $5.3 million, and as much as $1.7 million in Apollo’s
expenses, if the company accepts a superior offer.

Great Wolf owns, manages and licenses family resorts
featuring indoor water parks, suite-style rooms, restaurants,
spas and arcades. The company started its first Great Wolf Lodge
in Wisconsin Dells, Wisconsin, in 1997, and the chain has
expanded into eight other U.S. states and Canada.